What to do with a corrected W2?

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Thobbs3285
Thobbs3285 Member Level 2
in After you file

Hello,

Thank you for taking the time to read this, I will try to be as detailed as possible. In 08/2021 I started working at an engineering firm in Colorado, I at the time had been a Colorado resident my entire life. In 10/2021 I moved to FL in order to be closer to our east coast clients, I became a FL resident in 11/21 and then no longer paid state income tax which was great. In the time frame of 01/2022-08/2022, the person running the payroll at this very small firm would occasionally forget to change my location to FL which resulted in me paying CO state income tax from time to time. By August I had paid roughly 3k in state income tax and had left that company. During tax season in the beginning of the year, I got the company to send me a corrected W2 but I was advised by a CPA that I should not have to do anything, and the company will have to submit all the necessary paperwork on their end, then they would receive a refund and be able to reimburse me. The company had a CPA that said I needed to file a new state tax return with CO and again I was advised to not do that by the CPA I used.

So my question is this, do I need to submit anything to the state of CO? I know government bodies move at a pace that is basically stationary, I haven't received any form of communication from the state of CO or that company. I am hoping maybe someone on here has had a similar experience or has helped guide a lost soul like myself on this matter.

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  • MatthewD
    MatthewD FreeTaxUSA Team
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    Hello Thobbs3285,

    Generally, in situations like this it is advised that you follow the advice of the company's CPA. File a CO part-year or nonresident tax return and claim a refund for the amount of taxes paid to CO, while you were NOT a resident. Only report the CO source income while you were a resident of CO.

    Your situation is not uncommon. Companies make payroll errors all the time and in order to claim a refund of the taxes paid erroneously, you file a tax return with that state to claim a refund.

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